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Survey looks at demand for multimedia services by youth demographic
Posted: 26-May-2005 [Source: Management Network Group]

[Survey finds service most in demand by young mobile users is music followed by mobile TV and video, followed by multi-player, 3D gaming.]

Overland Park, Kan -- The Management Network Group, Inc., a leading provider of management consulting services to the global communications industry, today announced key findings from recently completed proprietary market research, Mobile Broadband Applications and Content: A Market Assessment among Youth and Young Adults. This study focuses on the receptivity and market opportunity for introducing multimedia, next-generation wireless services and content among the elusive Youth and Young Adult markets.

Most interested in multimedia wireless services are male consumers between 13 and 24 years of age. Perhaps most surprising however, 2 out of 5 survey respondents said they would be receptive to commercially supported video clip services, offering an opportunity for advertisers seeking to reach the highly lucrative young male demographic.

Key findings:

* Among services, music ranks first among consumer interest with mobile TV and video ranking second and multiplayer, 3D gaming coming in third, based on a combination of usage interest, likelihood to recommend and likelihood to purchase.

* Nearly one in four would either be extremely likely or very likely to switch to a competitive carrier if their existing carrier did not offer advanced, multimedia wireless content and services.

* Interest in broadband and multimedia services is equal among Prepaid and Postpaid customers, offering potential opportunities to grow ARPU among the Prepaid segment.

* Most consumers anticipate upgrading their handsets through a longer term contract to overcome the price barrier of 3G capable handsets.

"The new generation of consumers is demanding greater choices, a more personalized telecommunications experience and will influence the direction that carriers will need to take as 3G and future mobile technology is delivered to the marketplace," said Rich Nespola, TMNG Chairman and CEO.

Key implications:

* Wireless carriers and MVNOs should prepare to offer broadband multimedia services to their customers.

* Service providers risk losing up to one fourth of their younger subscriber base without these content and applications.

* The cable industry is not well positioned today to take advantage of mobile broadband applications without a wireless service offering. TMNG's Mobile Broadband Applications and Content: A Market Assessment among Youth and Young Adults research was completed in March 2005. Results are based on 1000 online interviews among primary decision-makers or decision-influencers between the ages of 13 and 34. The sample was controlled to attain an even mix among gender and age groups, and a geographical mix of the US resulting in a 95 percent level of confidence with a +/- 3 percent margin of error.

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